BANKING TERMINOLOGY
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canceled check -- A "used" check that has been paid and subtracted from the check-writer's account. Canceled checks have extra data on them from the bank. The images are usually mailed to the writer each month with the statement, although many banks keep records that are available upon request. Canceled checks are excellent receipts that should be kept for reference and tax purposes.

capital -- A stock of accumulated wealth used or available for producing more wealth.

cardholder agreement -- The written statement that defines and explains all legal terms for a credit card agreement. It includes payment terms, billing dispute procedures and communications guidelines, among other items.

cash -- Money in the form of paper and coins (e.g., U.S. dollars and cents). In banking, this is the act of paying a check.

cash advance fee -- A fee assessed when a card holder uses a credit card to obtain cash. These fees are often charged as a percentage of the cash obtained.

cashier's check -- A check issued by a bank, drawn on its own funds rather than on one of its depositor's funds.

certificate of deposit -- A savings account in which an individual promises to deposit the money for a set period of time, for which the bank pays higher interest than a regular savings account.

charge card -- A card that requires a user to pay off the entire balance every month.

check -- Any written document instructing a bank to pay money from the writer's account.

check card -- See debit card.

checking account -- An account for which the holder can write checks. Checking accounts pay less interest than savings accounts, or none at all.

clear -- A check "clears" when its amount is debited (subtracted) from the payer's account and credited (added) to the payee's account.

collateral -- Anything that a bank accepts as security against the debtor's not repaying a loan. If the debtor fails to repay the loan, the bank is allowed to keep the collateral. Collateral is most commonly in the form of real estate (e.g., a home).

compound interest -- Interest calculated not only on the original principal, but also on the interest already accrued.

co-signer -- The person who signs on a credit agreement in addition to the primary applicant. This person is legally responsible for repayment of the debt.

credit bureau -- An agency that checks credit information and keeps a complete file on people who apply for and use credit.

credit card -- A plastic card that gives access to a line of credit. Users are limited in how much they can charge, but they are not required to repay the full amount each month. Instead the balance (or "revolve") accrues interest with only a minimum payment due.

credit limit -- The maximum amount of money a borrower can access in a credit account.

credit rating -- A banks evaluation of whether a person is suitable to receive credit. Credit ratings are based on an individual's character, capacity to repay, and capital.

credit report -- A summary of the credit usage of a consumer, including payment histories and current status of all credit accounts. This plays a very large part in the decision to grant credit to a consumer.